Unions slate 'unfair Budget'

The Budget lacked any sense of common good and prioritised banks over the working poor, the Irish Congress of Trade Unions said.

The Government offered no sustainable growth or jobs plan and instead focused on cutting the incomes of low and middle income earners, Congress general secretary David Begg said.

"There is no sense of the common good, no sense of the vision that should underpin any society," he said. "They will pump €50 billion into the banks and take €15 billion out of the pockets of the working poor. That is unacceptable and completely unsustainable."

Siptu president Jack O'Connor expressed doubts about the growth figures underpinning the Government's decisions and that there was no provision, of any substance, for investment or job creation.

Mr O’Connor said the cuts insulated the rich and targeted low and middle income earners, who would contribute €1.15 billion as a result of changes to tax bands and credits.

“Parallel with this, people who have been contributing tax all their working lives and paying their PRSI are to suffer further reductions in the meagre benefits they receive when they are unfortunate enough to lose their jobs,” he said.

Hospitality and retail union Mandate accused the Government of "scapegoating" lower and middle income workers and said that when combined with the proposed €1 cut to the minimum wage the Budget represented an extraordinary "double whammy" aimed at the "working poor".

Mandate general secretary John Douglas said the Government's tax strategy was
totally regressive as it did not address the issue of getting more tax from those on very high incomes.

"Cutting the wages of the lowest-paid workers will only degrade working conditions and lead to a decrease in productivity, damage consumer spending, and will place those with the lowest incomes in an impossible situation," he said.

Mr Douglas said a general election was urgently needed so a government that would prioritise job creation and economic growth could be appointed.